GUVNL’s 400 MW/800 MWh BESS Project Awarded At Rs 2.26/KW

Highlights :

  • The record low prices continue with a trend set early this year, with bids coming in at almost 50% below rates seen last year
GUVNL’s 400 MW/800 MWh BESS Project Awarded At Rs 2.26/KW Kintech, H.G., Bhilwara, & Advait Secure GUVNL's 400 MW/800 MWh BESS Project

Gujarat Urja Vikas Nigam Limited (GUVNL) has announced Kintech Synergy Private Limited, H.G. Infra Engineering, Bhilwara Energy, and Advait Infratech as successful bidders for its 400 MW/800 MWh Battery Energy Storage System (BESS) project (Phase IV). The tender for the project was released in September 2024, with results declared within two months.

The Gujarat-based discom allocated a 100 MW project to Kintech Synergy and Bhilwara Energy at a quoted value of ₹1.15 lakh/MW/month and ₹2.26 lakh/MW/month, respectively. It allocated a 250 MW project to H.G. Infra at ₹2.26 lakh/MW/month and 50 MW to Advit Infratech at ₹22.60 lakh/MW/month. This marks a significant reduction in the BESS tariff, with the lowest bid being ₹2.26 lakh/MW/month, setting a new benchmark for BESS projects in India.

The 30% Viability Gap Funding (VGF) project also included an extended tariff structure for states with high solar penetration. The tender offered a 5% discount compared to the initial price discovered for similar projects under VGF, as offered by NVVN at ₹2.37 lakh/MW/month. This tender is noteworthy for reducing the tariff by 40% compared to the last tender offered at ₹3.72 lakh/MW/month, which did not include VGF support.

As per the original tender,  the total capacity offered and the project for selection of BESS projects is for a total capacity of 800 MWh. The tender further specified, “The minimum bid size shall be 100 MWh, i.e., 50 MW x 2 hours, and in multiples of 50 MW/100 MWh. For every 100 MW/200 MWh BESS project, only 11,000 sq. m of land will be allotted to the BESSD.”

To develop the project, the GUVNL tender mentioned, that an additional capacity of 400 MW/800 MWh could be allocated under the project. To develop this project, GETCO can prove land can be provided on a right-of-use basis to the developer at an annual lease charge of Rs 1 per plot per year. 

GUVNL Previous BESS Tender Result: A Brief Comparison

It released its first BESS tender in August 2022. It later awarded Phase III GUVNL BESS tender to Gujarat-based Gensol Engineering. Under phase III. GUVNL sought bids for the 250 MW/500 MWh BESS Project in June this year and later awarded the tender at the tariff rate of Rs. 372,978/MW/Month.

Whereas, GUVNL’s phase II tender allotted the BESS project to Gensol Engineering and IndiGrid 2 (IndiGrid).  Gensol secured 70 MW/140 MWh, quoting ₹448,996/MW/month, and IndiGrid got the remaining 180 MW/360 MWh, quoting Rs. 449,996/MW/month.

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